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Viaduct agreement approved by City Council committee

The Seattle City Council’s transportation committee voted Tuesday to approve a memorandum of agreement with the state that outlines the city’s commitment to just under $800 million in construction related to the Alaskan Way Viaduct tunnel replacement.

Transportation chair Jan Drago said the agreement is among several agreements that will be signed during the course of the project.

The agreement is headed to the full council, mostly likely next Monday. But the more interesting part is likely Friday, when the budget committee is scheduled to start looking at the Transportation Department’s budget for 2010, which likely will include some questions about financing for the tunnel plan.

Under the agreement, the city would agree to pay $248 million for utility relocation; $225 million for replacement of the central seawall; and $123 million for a new promenade or public space along the waterfront. It also includes $191 million for the Mercer West project and partial funding of the Mercer East project, which will serve as the tunnel’s north portal.

The agreement commits to evaluating a proposal for a First Avenue streetcar, which was included in the original agreement on the tunnel plan signed in January between the city, state and county. Mayor Greg Nickel’s six-year capital improvement plan, released last week, does not include funding for the streetcar, which is estimated to cost $140 million.

Mayoral candidate Mike McGinn, who has campaigned against building the tunnel, issued a statement urging the City Council not to rush into approving the agreement before changing provisions in the tunnel plan that put Seattle taxpayers on the hook for any cost overruns.

“If there are major overruns, Seattle taxpayers could be financially drained for years, if not decades,” McGinn said in a statement.

“At the same time we’re dealing with massive service cuts caused by large city, county and state deficits, we’re rushing to build the most expensive viaduct alternative put forward,” he said.

The tunnel project, including the north and south portals, is estimated at $3.1 billion. The state has agreed to spend $2.4 billion, plus $400 million from tolls on the tunnel and $300 million from the Port of Seattle.

The tunnel, itself, is estimated to cost $1.9 billion. That includes $418 million for assumed risks such as schedule delays and overruns, said Ron Paananen, the state Transportation Department’s project manager for the Alaskan Way Viaduct project, during the committee hearing.

WSDOT’s estimate also assumes $166 million from inflation.

In response to McGinn’s statement, his opponent, Joe Mallahan, questioned how city officials could be accused of “rushing” the tunnel project, when it took 8 years to reach agreement on it.

“It’s another illustration that there is much at stake in this election. For eight years we have debated a solution for replacing the Alaskan Way Viaduct, and today my opponent issued a statement warning against “rushing to build” this critical infrastructure project,” Mallahan said in a statement.

“My opponent wants to shift us in reverse. His plan is to flood downtown with tens of thousands of vehicles, bringing our traffic and our economy to a screeching halt,” he said.

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